Ex-Samsung Workers Allege Discrimination Against Foundry Employees; Expert Cautions That Continued Practices May Result in Business Loss

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Samsung’s Culture Impedes Innovation, Former Employees Reveal

Recent insights from The Daily highlight significant concerns regarding Samsung’s corporate culture and its detrimental impact on innovation. Interviews with ex-employees reveal a restrictive environment that discourages risk-taking, especially in an industry characterized by rapid technological advancements.

Samsung and TSMC stand as the only two players in the global contract chip manufacturing arena that can produce advanced logic chips. However, TSMC currently holds a competitive edge, primarily due to Samsung’s struggles with production yields and efficiency. A report from the Chosun Daily suggests that these discrepancies may stem from fundamental cultural differences between the two companies.

The experiences shared by former workers predominantly stem from Samsung’s memory division; nevertheless, insights from an engineer in the foundry division shed light on the negative impacts of internal hierarchies. Describing a palpable bias against foundry staff, one engineer recounted being branded as “third-rate” compared to their counterparts in memory technology, leading to a systemic imbalance in promotion opportunities and workplace treatment.

Many of the interviewed employees highlighted a critical cultural limitation: management’s reluctance to embrace risk and new ideas. One former employee captured this sentiment succinctly: “When the first question is ‘Can you guarantee it’ll work?’ the flow of new ideas often comes to a halt.”Another echoed this sentiment, noting that the response to new proposals is frequently, “Will you take responsibility if this fails?”Such an atmosphere stifles innovation and discourages creativity.

Moreover, while Samsung struggles in the foundry sector, its memory division is falling behind in the burgeoning AI landscape. The company is also contending with internal issues such as a “culture of falsified reporting, ”where employees feel pressured to downplay errors to avoid job insecurity. This environment not only undermines authenticity but also fosters a workplace where promotions favor those who adhere to traditional pathways, thereby limiting diversity within the organization.

In conversation with The Daily, a professor from Sogang University’s business school offered a critical perspective. He described Samsung as an institution that prioritizes management perspectives and evaluates engineering decisions based on financial metrics. This approach starkly mirrors the early 1990s modus operandi of Apple, where founder Steve Jobs undertook drastic measures to refocus the company on design and innovation, ultimately transcending its former challenges. The professor cautioned that without a fundamental overhaul of their system, Samsung risks further deterioration in its semiconductor capabilities.

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